The post Why did these Bitcoin and Ethereum treasuries expand under stress? appeared on BitcoinEthereumNews.com.

The two largest crypto treasury companies, Bitcoin-focused Strategy (formerly MicroStrategy) and Ethereum-heavy BitMine, executed significant expansions of their digital asset treasuries this week despite their falling premium. On Dec. 8, Strategy revealed that it acquired 10,624 BTC last week for $962.7 million, its largest weekly outlay since July. This purchase effectively ignored the broader signal from the equity market, where its MSTR stock has declined 51% year-on-year to trade at $178.99. Similarly, BitMine, the largest corporate holder of Ethereum, added 138,452 ETH to its balance sheet. These acquisitions occur as the broader Digital Asset Treasury (DAT) model faces structural stress. Over the past months, the arbitrage that permitted public companies to trade at multiples of 2.5 times their Net Asset Value (NAV) while issuing equity to fund acquisitions is closing. For context, Strategy’s premium to NAV (mNAV) now sits near 1.15, while that of BitMine stands around 1.17. This effectively showed that these firm’s “infinite money glitch”, which is the market shorthand for printing stock at inflated valuations to purchase assets below intrinsic equity levels, is ceasing to function. Essentially, the structural advantage that defined the first half of 2025 has evaporated, leaving the two largest DATs to buy into weakness for reasons that reveal the fragility of the current corporate-crypto landscape. Their mechanics under stress Strategy’s most recent acquisition brings its total holdings to 660,624 BTC, representing more than 3% of the total Bitcoin supply. At current market prices, this position is valued at roughly $60 billion, containing more than $10 billion in unrealized gains. However, the funding mechanism for this growth faces immediate threats. The company funded its latest purchase mostly through common-stock issuance, a tactic that generates value only when the firm trades at a premium to its underlying assets. For years, Strategy utilized a recursive loop…

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Filed under: News - @ December 9, 2025 1:35 am